Financial advisors are chomping at the bit to add generative artificial intelligence to their toolkits – but it could be a while before the technology catches on.
That's according to two reports highlighting the growing enthusiasm for AI in wealth management, as well as key barriers to adoption.
In its latest survey of advisors, Fuse Research Network found four-fifths (82 percent) plan to invest in generative AI in the coming years, up from 66 percent in 2024.
While interest in other AI applications, such as machine learning and predictive analytics, is also growing, generative AI is at the forefront of advisors’ priorities.
“Only a small segment of advisors currently integrates AI into their business,” Mike Evans, director of advisor and benchmark research at Fuse Research, said in a statement. “However, we anticipate AI will play an increasingly vital role as technology providers introduce tools that improve efficiency, personalization and decision-making."
For asset managers looking to strengthen their business relationships, Evans said sales and marketing teams can "leverage AI to optimize advisors’ practices."
Those findings align with a separate survey from Accenture in February, which included 500 financial advisors in North America. In that poll, a decisive 96 percent believe generative AI has the potential to transform client service and investment management. A similarly overwhelming majority, 97 percent, expect the most significant impact will come within the next three years.
Advisors cited several key use cases for generative AI, with half prioritizing tools that help assess product suitability and market trends. Another 42 percent said they see value in using AI for personalization and business recommendations, while 48 percent highlighted automated portfolio rebalancing as a top application
Despite the optimism, adoption remains a challenge. While 78 percent of surveyed advisors said their firms are experimenting with generative AI, only 41 percent reported that their firm is actively scaling the technology as a core part of its business..
The survey also touched on barriers to adoption, with 43 percent of financial advisors flagging technology and data limitations, as well as client trust, as the top concerns. Responsible AI use was top-of-mind, with 77 percent of advisors pointing to data quality, transparency, and potential biases in AI training as major obstacles.
To supplement the technology guide it issued last year, CFP Board released a Gen AI ethics guide for certificants in February, highlighting pitfalls and areas for would-be users to focus on. Among other things, the guide emphasized that the technology "doesn't replace expertise," and users should take care when using opaque, black box-like platforms.
"CFP professionals should exercise caution when using Generative AI for work that requires a reasonable understanding of assumptions and outcomes, such as developing recommendations for Clients, if there are limitations in accessing the data and algorithms that Generative AI platforms use for the output," it said.
For its part, Accenture suggested that firms should implement governance frameworks and conduct regular audits to ensure AI-generated insights remain reliable.
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